Sir Jim Ratcliffe set to buy 25% stake in Man United – sources،
British billionaire Sir Jim Ratcliffe is set to acquire a major stake in Manchester United, which would allow his INEOS team to have “sporting influence” at Old Trafford, sources have told ESPN.
A source with knowledge of the process told ESPN that Ratcliffe was “more savvy in executing his deal” than his rival Sheikh Jassim, a Qatari billionaire who on Saturday withdrew his interest in buying United after failing to negotiate a complete takeover of the club from their American owners, the Glazer family.
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Sheikh Jassim’s exit from the takeover race for the 20-time English champions has paved the way for Ratcliffe, the founder of chemical company INEOS, to strike a deal to acquire a 25% stake from the Glazers, who own 69 % of the club. The remaining shares are owned by small investors on the New York Stock Exchange.
Under the deal, Ratcliffe, 70, is willing to pay an inflated price in exchange for control of certain decisions, which would not typically be guaranteed by a minority investment.
Ratcliffe, according to one source, is prepared to pay between £1.3 billion ($1.576 billion) and £1.5 billion for the stake, despite United’s current market value sitting at around 2,000,000. £6 billion.
The deal, which could be signed as soon as this week, would ensure the Glazers retain a majority stake.
This is likely to upset a large portion of United fans who have been eager to see the family, which also owns the Tampa Bay Buccaneers, commit to a full sale.
However, sources have told ESPN that purchasing shares from Ratcliffe would be the first step in a proposal to eventually take full control of the club.
Ratcliffe, who also owns French club Nice and Swiss team Lausanne-Sport, was born and raised less than 10 miles from Old Trafford and grew up a United supporter.
While Sheikh Jassim’s offer was initially seen as the most likely to succeed early in the process due to the funds he had available, sources told ESPN that Ratcliffe structured his offer in a way that suited the Glazers and allows brothers Joel and Avram, United’s co-presidents, to remain involved.
Ratcliffe’s deal would also satisfy the desire of the other four Glazer siblings – Bryan, Kevin, Edward and Darcie – to reduce their stake in the club.
The Glazers’ own valuation of United, at more than £6 billion, caused Ratcliffe’s main competitor, Sheikh Jassim, to walk away from negotiations.
Sheikh Jassim and his Qatari consortium were prepared to pay around £5 billion for 100% of the club, while also pledging to clear debt incurred during their ownership of the Glazers. They have also committed to investing in the stadium, training ground and playing squad.
A source close to Sheikh Jassim’s offer called the Glazers’ assessment “fanciful and far-fetched.”
While Sheikh Jassim’s team has always maintained it was only interested in a 100% takeover, Ratcliffe and INEOS changed their offer during the tender which began in November.
Ratcliffe initially offered to buy the Glazers’ 69% stake, but amid doubts about the willingness of the six Glazer siblings to sell – particularly co-presidents Joel and Avram Glazer – he rethought his approach to target a minority participation.
